Mark Elbaum: Let’s be careful with that. So, if we’re at 63, and I’m just going to go quarterly, because that’s how I think of it. If we’re at 63, you can deduct 20 from that, okay? And that takes us to, let’s call it 43. Already in that 63, a circa 20 basis points of variable cost on the $1.7 billion that we funded, okay? So, now take your model and assume plus or minus 1.7 and attach 20 basis points to that variance.
Rick Shane: Got it. Okay. Very helpful. Thank you for walking me through that. The other question I have is, obviously as part of this, you have, in terms of both cost reduction and focus on margin, you have conceded substantial market share, probably cut your market share in half on a quarter-over-quarter basis, and could be down 80% on a year-over-year basis. Do you think that with the revised cost structure, you will be in a position to start regaining market share? Will that come to you naturally because of what’s going on in the market? Or will you need to reinvest in the business in order to recapture some of that share going forward?
Willie Newman: Yes. Hey, Rick, it’s Willie. So, we have been reinvesting in the business. We’ve been very focused on specific activities that will help us regain some of the market share that you referenced. We’ve also been able to preserve the significant majority of our coverage from a sales standpoint. And so, really that combination we think will result in – we’ll get the natural growth from the seasonality curve, but additionally, we’ll start to take market share from that the market – some of the market share back that we’ve conceded.
Rick Shane: Got it. Okay. Hey, guys, I just want to acknowledge, I know that there’s been a lot of hard work and a lot of hard decisions to get where you are, and it’s going to be interesting to see how it plays out over the next year. Thank you, guys.
Operator: Our next question comes from Kevin Barker with Piper Sandler. Please go ahead.
Kevin Barker: Great, thank you. Just to follow up on the losses, were there other provisions you put up for reps and warrants due to higher interest rates? Can you give us – can you outline the level of reserves you have in place today? And then also, have you taken a significant amount of losses throughout 2022 just because of higher rates impacting reps and warrants?
Mark Elbaum: Yes. So, Kevin, we’re – the answer is yes. We started 2022, we were able to trade our scratch and dent inventory in the circa 90 context, is where we started 2022. By the time we got to where we are now, that market’s trading around the mid-70s, low 70s. So, that’s a source of a lot of the losses that we’ve taken, is just having to mark, not only the scratch and dent inventory down, but also the reserves for potential future repurchases. We had to increase the severity on that. So, that was the cause of a lot of the losses. Now, the good news, if you will, is that we’re starting to see that market certainly bottom up, if not recover. And we’re starting to see numbers that are closer to the mid-70s to high 70s. So, we feel at least that that’s trending better.
